Abilene offloads stake in Oklahoma oil field for $65k
Abilene Oil and Gas has sold its stake in the Klick East oil field located in the prolific Anadarko Basin for $US50,000 ($64,885).
The company (ASX:ABL) owned a 49.2 per cent interest that it says is non-core.
Abilene is primarily focused on oil and gas exploration in the United States’ Mid West, specifically Kansas.
The 320-acre Klick East oil field is located in Woods County, Oklahoma, which is in the middle of the Northern Shelf of the Anadarko Basin – a large basin with a long history of oil and gas production.
The operator of the joint venture is CMX Inc.
The Klick #1-22 well was shut down in the December quarter.
Abilene said at the time that the equipment would be either sold or used for new or existing wells to reduce extra spending.
“It’s had a number of production issues,” non-executive chairman Paul Salter told Stockhead.
“So our option was basically to either put more capital into it, which we weren’t keen on doing and our joint venture wasn’t keen on doing.”
CMX has also sold out, Mr Salter said.
“It probably would have cost about $US125,000 to effectively rejuvenate the well and the NPV on that just didn’t look any good,” he said.
“So the JV partner found a local buyer who was willing to spend that sort of money on it.”